- Strong financials and robust balance sheet

- However, significant sales and earnings deficits expected in the second quarter as a result of the coronavirus pandemic

Buttenwiesen, 30 April 2020 - SURTECO GROUP SE, holding company for leading national and international brands of surface technology, is directing all possible measures towards successfully overcoming the current coronavirus crisis. The optimism is based on a broadly based product portfolio across a range of sectors, the robust balance sheet and strong financials. In the business year 2019, the forecasts were achieved with Group sales of € 675.3 million and in the operating result (EBIT) of € 40.5 million adjusted by one-off effects amounting to € 19.4 million. The reported EBIT was € 21.1 million (2018: € 32.2 million), consolidated net profit amounted to € 9.4 million (2018: € 18.6 million). The impacts from the anticipated global recession in 2020 caused by the coronavirus cannot yet be quantified and against this background, the Management Board in consultation with the Supervisory Board agreed to submit a proposal for appropriation of the net profit of
SURTECO GROUP SE later in the year.

"SURTECO has a robust balance sheet and strong financials, and consequently is well positioned to master the current coronavirus crisis. Our market and technology leadership, and our broadly-based product portfolio benefit us in the competitive environment" - this was the confident view expressed by Wolfgang Moyses, Chairman of SURTECO GROUP SE.

Free cash flow improved to € 47.9 million - high level of balance sheet quality

Thanks to the improvement in the level of debt, primarily as a result of the sale of the impregnating business in the USA and the repayment of the last tranche of a US Private Placement, the balance sheet total was reduced by 8 % from € 844.5 million to € 780.3 million. While the equity ratio rose significantly from 41.8 % to 45.4 % as at 31 December 2019, the net financial debt came down substantially from € 197.5 million to € 179.9 million, as a result of which the level of debt fell from 56 % to 51 %. The operational development and focused investment activity led to an improvement in free cash flow from € 11.2 million to € 47.9 million. This means that the Group is in a good position to overcome the potential effects of the coronavirus pandemic on the back of a robust balance sheet and good financials.

Outlook for 2020: First quarter with rise in earnings, planned significant sales and earnings growth no longer achievable in the business year 2020 owing to the coronavirus crisis

In spite of significantly negative effects as a result of the coronavirus from the middle of March, SURTECO was able to generate an improvement in EBIT from € 11.6 million to € 13.4 million in the first quarter of 2020. This corresponds to an increase of 15.5 %. Key factors were positive effects from the efficiency enhancement measures implemented in the previous year, good utilization of all production businesses until the middle of March and improvements in the cost of materials ratio. Hence, EBIT in the Segment Decoratives rose from € 9.4 million in the previous year to € 10.2 million, in the Segment Technicals from € 1.0 million to € 1.9 million and in Profiles from € 2.8 million to € 3.4 million. The coronavirus crisis and the disposal of the North American impregnation business was reflected in Group sales with a fall from € 181.9 million in the first quarter of 2019 to € 171.6 million.

The impacts of the coronavirus pandemic will exert a significantly negative impact particularly in the second quarter. The uncertainties surrounding the duration and scope of the pandemic mean that the impacts cannot be assessed for the business year 2020. Owing to the extensive government measures introduced throughout the world to contain the crisis, a global recession is inevitable and we have to anticipate sales that are substantially below the forecast of between € 675 million and € 700 million made in the absence of the effects of the crisis. Against this background, a fall in the consolidated result (EBIT) to significantly below the original forecast of € 40 million to € 45 million is highly likely.

You will find the Annual Report for the year 2019 and other information about SURTECO GROUP SE on the Internet at www.surteco-group.com. The publication of the 3-month report 2020 is scheduled for 15 May 2020.

Important indicators of SURTECO GROUP SE (in € million)

(1) Since July 2019 without Sales from sold impregnation business

(2) Difference to balance of segment earnings due to internal clearing

(3) Based on a number of shares amounting to 15,505,731

(4)

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Profile of SURTECO

SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized holding company with international operations. The company listed on the stock exchange combines leading national and international brands for surface technology under one roof. The comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edgebandings based on specialist technical papers and plastics. This portfolio is complemented by skirtings made of plastics, technical extrusions (profiles) for industry, and roller shutter systems.

With more than 3,100 employees at 22 production sites worldwide, the Group generates annual sales of around EUR 675 million in 2019. 25 % of these sales are generated in Germany, 47 % in European countries outside Germany and a further 28 % in America, Asia and Australia. Customers of the SURTECO Group primarily come from the wood-based, flooring and furniture industries, as well as from interior design.

The shares in SURTECO GROUP SE are listed on the official market (Prime Standard) of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and ISIN DE0005176903. They are also traded on the stock markets in Berlin, Düsseldorf and Stuttgart.

Cautionary note regarding forward-looking statements

This press release may contain statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company assumes no obligation to update any forward-looking statements contained herein or to adapt such information to future results or developments.